It’s a fake world
Overview
Counterfeiting in generalKaterina
Action and effectsMaxim
ReasonsRinata
Music industryBenoît
Counterfeit productsBart
Counterfeit?
What are counterfeits? Why do people buy
counterfeit goods? Why do people sell
counterfeit goods? Expansion/globalisation Cause of globalisation
What are counterfeits?
= ‘knockoffs’
Imitation, forgery Currency, documents Art, clothing,
pharmaceuticals,…
Why do people buy counterfeit goods? (1)Primar
y market
Secondary market
Why do people buy counterfeit goods? (2)
Secondary market
Low prices Status Weak or no penalties Depends on characteristics
of the product and the consumer
Why do people sell counterfeit goods?
Profits Large market size Brand power Weak or no penalties
Expansion
products
More: USD 200 billion !
Range :Luxury to
common goods
globalisation
All economies
Asia
Globalisation (1)
0
10
20
30
40
50
60
70
number of source economies
seizures (% of total)
Globalisation (2)
Consumption patterns vary
Automotive parts: Middle East, N-America
Tobacco: Widespread, developing economies in Latin America, Africa
Piracy of music, movies: all economies
Cause of globalisation (1)
Internet
Free trade zones
Cause of globalisation (2)
Free trade zones= crossing international
borders with minimal regulation
→ less control→ disguise point of
manufacture
Cause of globalisation (3)
Internet Anonymity Flexibility Market size Market reach Deception
Action & effects
Action Ip Interpol BASCAP Costs
effects
ACTION
Intellectual property (IP)
Term IP Intellectual property
law The agreement on
trade related aspects of intellectual property rights (TRIPS)
Interpol
Created an intellectual crime action group
July 2002
BASCAP
The business alliance to stop counterfeiting and privacy
Launched in early 2005 More recent and
comprehensive global initiatives
Costs related to combating counterfeiting
and privacy
Production protection Packazing special Litigiation Investigations and
research …
EFFECTS
Economy wide effects
Innovation and growth Criminal activities Environment Employment
Overview
Counterfeiting in generalKaterina
Action and effectsMaxim
ReasonsRinata
Music industryBenoît
Counterfeit productsBart
Globalisation of deceit
• Counterfeiting:the oldest crime in history
• Number 1 crime of the 21st century
What are the reasons for counterfeiting?
1) Does globalisation have an impact on counterfeiting?
2) What have World Bank(WB) and International Monetair Fonds (IMF) to do with it?
3) Greg Palast ”Democracy for sale”4) Ecuador-example5) Higher life standard?6) Anti-Counterfeiting Trade
Agreement(ACTA)
1)Does globalisation have an impact on counterfeiting?
Due to certain circumstances, created by globalisation, a lot of people were pushed in a certain position
2)What have World Bank(WB) and International Monetair Fonds (IMF) to do
with it?
Many specific, destructive conditions for developing countries for lending the money
”3) progressive investigative
journalist
4)Ecuador-example
Few conditions to loan the money from WB- Increase the price of natural gas with 80%!-fire 26 000 people!- cut the salary of lasting people with 50%!-hand over the largest waternetwork of the country to foreign companies
5)Higher life standard?
South-Africa : since 1980 the income per capita decreased with 23% !!!
6)Anti-Counterfeiting Trade Agreement(ACTA)
Agreement for the purpose of establishing international standards on intellectual property
Why do people buy conterfeiting products?
Deceptive conterfeiting
Non-deceptive conterfeiting
The consumer doesn’t know that he has purchased a conterfeit product
Consumer is aware of the fact that he bought a conterfeit product
Types of people who may be more willing to buy counterfeit brands
1. have relatively little regard for the law2. have negative attitudes towards big
business3. want to demonstrate their status,but
don’t have the funds4. are curious and want to experiment5. like taking risks
People who :
Attitude and function of counterfeiting
SOCIAL-ADJUSTIVE ATTITUDE
VALUE-EXPRESSIVE FUNCTION
To gain approval in social situations
Helps people to communicate their central beliefs ,attitudes and values
Self-expression Combination of the two: example : a louis vuitton bag
Overview
Counterfeiting in generalKaterina
Action and effectsMaxim
ReasonsRinata
Music industryBenoît
Counterfeit productsBart
Music industry
Figures Legal downloading RIAA SABAM
http://www.youtube.com/watch?v=oD3VTMASdpA&feature=related
Figures 2010
7.7 million 1.2 billion tracks 219 million pound or €
248 496 539 Still on the rise
Legal downloading iTunes Store Napster Zune Marketplace Amazon MP3 Nokia Music Store TuneTribe Kazaa eMusic
RIAA The Recording Industry
Association of America 2003: first lawsuits Purpose: respect the
copyrights+ minimize the number of illegal downloads
SABAM
Fines Music in public Amounts of money to
high
Counterfeit products
Fake shoes Costs Fake vs. Authentic Tips
Fake shoes? Many different names Production & export = illegal Infringing upon Copyright
laws Cheap imitations
How? Employee steels the design Sells it to a random factory Produces in mass amount Don’t use high quality material Never the same as the original
Cost?
Who you deal with; How many are purchased; Customs makes it
harder to import; Costs to import are high.
Differences between fakes and autheticsFakeAuthentic
Website Tips Read the Policy Verify the sizes Check the sizes again Check the price Check their stock See where they come from Check the quantity Check the pictures Check the pictures again
Overview
Counterfeiting in generalKaterina
Action and effectsMaxim
ReasonsRinata
Music industryBenoît
Counterfeit productsBart
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